We define our timeshare financing receivables portfolio segments as (i) originated and (ii) acquired. Our originated portfolio represents timeshare financing receivables that originated after August 2, 2021 related to Diamond (“Legacy-Diamond”), after December 1, 2023 related to Grand Islander (“Legacy-Grand Islander”), after January 17, 2024 related to Bluegreen (“Legacy-Bluegreen”) and timeshare financing receivables that existed both prior to and following the various acquisition dates (“Legacy-HGV”). Our acquired portfolio includes all timeshare financing receivables acquired from Legacy-Diamond, Legacy-Grand Islander and Legacy-Bluegreen that existed as of the respective acquisition dates.


	Originated				Acquired
($ in millions)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Securitized	$	715	$	770	$	610	$	214
Unsecuritized(1)	1,517		1,326		973		551
Timeshare financing receivables, gross	$	2,232	$	2,096	$	1,583	$	765
Unamortized non-credit acquisition premium(2)	—		—		115		32
Less: allowance for financing receivables losses	(539)		(500)		(361)		(279)
Timeshare financing receivables, net	$	1,693	$	1,596	$	1,337	$	518

(2)Non-credit premium of $97 million was recognized at the Diamond Acquisition Date, of which $22 million and $26 million remains unamortized as of March 31, 2024 and December 31, 2023, respectively. Non-credit premium of $1 million was recognized at the Grand Islander Acquisition Date with $1 remaining unamortized as of March 31, 2024 and December 31, 2023. Non-credit premium of $102 million was recognized at the Bluegreen Acquisition Date, of which $92 million remains unamortized as of March 31, 2024.

As of March 31, 2024 and December 31, 2023, we had timeshare financing receivables of $396 million and $415 million, respectively, securing the Timeshare Facility. In connection with the acquisition of Grand Islander and Bluegreen, we had access to additional timeshare facilities, which were terminated as of March 31, 2024.

For our originated portfolio, we record an estimate of variable consideration for defaults as a reduction of revenue from financed VOI sales at the time revenue is recognized. We record the difference between the timeshare financing receivable and the variable consideration included in the transaction price for the sale of the related VOI as an allowance for financing receivables and record the receivable net of the allowance. During the three months ended March 31, 2024, and 2023, we recorded an adjustment to our estimate of variable consideration of $64 million and $30 million, respectively. For our acquired portfolio, any changes to the estimates of our allowance are recorded within Financing expense on our unaudited condensed consolidated statements of operations in the period in which the change occurs.

We recognize interest income on our timeshare financing receivables as earned. As of March 31, 2024 and December 31, 2023, we had interest receivable outstanding of $17 million each period, on our originated timeshare financing receivables. As of March 31, 2024 and December 31, 2023, we had interest receivable outstanding of $11 million and $4 million, respectively, on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our unaudited condensed consolidated balance sheets. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of March 31, 2024, our originated timeshare financing receivables had interest rates ranging from 1.5% to 25.8%, a weighted-average interest rate of 15.1%, a weighted-average remaining term of 8.3 years and maturities through 2039. Our acquired timeshare financing receivables had interest rates ranging from 2.0% to 25.0%, a weighted-average interest rate of 14.9%, a weighted-average remaining term of 7.5 years and maturities through 2039.

We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. During the three months ended March 31, 2024, and 2023, we reversed $19 million and $18 million, respectively, of accrued interest income. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process is complete.


($ in millions)	Originated		Acquired
Balance as of December 31, 2023	$	500	$	279
Initial allowance for PCD financing receivables acquired during the period(1)	—		131
Provision for financing receivables losses(2)	64		—

Write-offs	(27)		(54)
Inventory recoveries	—		7
Upgrades(4)	2		(2)
Balance as of March 31, 2024	$	539	$	361


($ in millions)	Originated		Acquired
Balance as of December 31, 2022	$	404	$	338
Provision for financing receivables losses(2)	30		—
Write-offs	(17)		(16)
Inventory recoveries	—		4
Upgrades(4)	1		(1)
Balance as of March 31, 2023	$	418	$	325

(1)The initial gross allowance determined for receivables with credit deterioration was $137 million as of the Bluegreen Acquisition Date. We also reduced the gross allowance determined for receivables with credit deterioration for Legacy-Grand Islander by $6 million


	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2024 (remaining)	$	63	$	78	$	141
2025	89		110		199
2026	92		119		211
2027	93		130		223
2028	88		146		234
Thereafter	290		934		1,224
Total	$	715	$	1,517	$	2,232

Our acquired timeshare financing receivables were deemed to be purchased credit deteriorated financial assets. These notes receivable were initially recognized at their purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by our acquisition date assessment of the allowance for credit losses. The difference over which par value of the acquired purchased credit deteriorated assets exceeds the purchase price plus the initial allowance for financing receivable losses is reflected as a non-credit premium and is amortized as a reduction to interest income under the effective interest method.

The fair value of our acquired timeshare financing receivables as of each respective acquisition date was determined using a discounted cash flow method, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. Consequently, the fair value of the acquired timeshare financing receivables recorded on our unaudited condensed consolidated balance sheet as of the respective acquisition date included an estimate of expected financing receivable losses which became the historical cost basis for that portfolio going forward.

The allowance for financing receivable losses for our acquired timeshare financing receivables is remeasured at each period end and takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical timeshare financing receivables performance and the current economic environment in the re-measurement of the allowance for financing receivable losses for our acquired timeshare financing receivables. Subsequent changes to the allowance for acquired financing receivable losses are recorded within Financing expense on our unaudited condensed consolidated statements of operations in the period in which the change occurs.


	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2024 (remaining)	$	54	$	66	$	120
2025	79		93		172
2026	81		100		181
2027	83		106		189
2028	79		112		191
Thereafter	234		496		730
Total	$	610	$	973	$	1,583

We evaluate these portfolios collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the collectability of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for estimating expected defaults and determining our allowance for financing receivables losses on our timeshare financing receivables. For the static pool analysis, we use several years of default data through which we stratify our portfolio using certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current and forward-looking economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables.


	Originated
	March 31, 2024
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
FICO score
700+	$	896	$	414	$	7	$	67	$	1,384
600-699	316		229		2		15		562
<600	39		31		—		—		70
No score(1)	200		8		7		1		216
Total	$	1,451	$	682	$	16	$	83	$	2,232


	Originated
	December 31, 2023
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
FICO score
700+	$	882	$	403	$	3	$	—	$	1,288
600-699	311		220		—		—		531
<600	39		31		—		—		$	70
No score(1)	196		8		3		—		207
Total	$	1,428	$	662	$	6	$	—	$	2,096


	Originated Timeshare Financing Receivables
($ in millions)	2024		2023		2022		2021		2020		Prior		Total
FICO score
700+	$	249	$	501	$	333	$	131	$	31	$	139	$	1,384
600-699	75		205		157		59		11		55		562
<600	6		25		21		8		2		8		70
No score(1)	34		74		38		19		11		40		216
Total	$	364	$	805	$	549	$	217	$	55	$	242	$	2,232

Current period gross write-offs	$	—	$	7	$	12	$	2	$	1	$	5	$	27

As of March 31, 2024 and December 31, 2023, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $227 million and $208 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:


	Originated - Securitized
	March 31, 2024
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	522	$	148	$	—	$	11	$	681
31 - 90 days past due	12		9		—		—		21
91 - 120 days past due	4		3		—		—		7
121 days and greater past due	4		2		—		—		6
Total	$	542	$	162	$	—	$	11	$	715


	Originated - Unsecuritized
	March 31, 2024
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	782	$	390	$	16	$	72	$	1,260
31 - 90 days past due	21		22		—		—		43
91 - 120 days past due	5		6		—		—		11
121 days and greater past due	101		102		—		—		203
Total	$	909	$	520	$	16	$	72	$	1,517


	Originated - Securitized
	December 31, 2023
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	577	$	162	$	—	$	—	$	739
31 - 90 days past due	11		8		—		—		19
91 - 120 days past due	4		3		—		—		7
121 days and greater past due	2		3		—		—		5
Total	$	594	$	176	$	—	$	—	$	770


	Originated - Unsecuritized
	December 31, 2023
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	723	$	366	$	6	$	—	$	1,095
31 - 90 days past due	16		18		—		—		34
91 - 120 days past due	4		7		—		—		11
121 days and greater past due	91		95		—		—		186
Total	$	834	$	486	$	6	$	—	$	1,326


	Acquired
	December 31, 2023
($ in millions)	Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
FICO score
700+	$	256	$	66	$	—	$	322
600-699	189		20		—		209
<600	42		—		—		42
No score(1)	12		180		—		192
Total	$	499	$	266	$	—	$	765


	Acquired Timeshare Financing Receivables
($ in millions)	2024		2023		2022		2021		2020		Prior		Total
FICO score
700+	$	14	$	331	$	132	$	97	$	73	$	225	$	872
600-699	3		129		73		65		48		161		479
<600	—		5		3		7		8		27		50
No score(1)	—		40		28		16		21		77		182
Total	$	17	$	505	$	236	$	185	$	150	$	490	$	1,583

Current period gross write-offs	$	—	$	11	$	9	$	13	$	10	$	11	$	54

As of March 31, 2024 and December 31, 2023, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $302 million and $279 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:


	Acquired - Securitized
	March 31, 2024
($ in millions)	Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	118	$	49	$	410	$	577
31 - 90 days past due	5		1		14		20
91 - 120 days past due	1		1		6		8
121 days and greater past due	3		—		2		5
Total	$	127	$	51	$	432	$	610


	Acquired - Unsecuritized
	March 31, 2024
($ in millions)	Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	81	$	171	$	404	$	656
31 - 90 days past due	5		6		17		28
91 - 120 days past due	2		1		6		9
121 days and greater past due	242		14		24		280
Total	$	330	$	192	$	451	$	973


	Acquired - Securitized
	December 31, 2023
($ in millions)	Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	131	$	71	$	—	$	202
31 - 90 days past due	6		1		—		7
91 - 120 days past due	2		—		—		2
121 days and greater past due	3		—		—		3
Total	$	142	$	72	$	—	$	214


	Acquired - Unsecuritized
	December 31, 2023
($ in millions)	Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
Current	$	91	$	183	$	—	$	274
31 - 90 days past due	5		3		—		8
91 - 120 days past due	2		1		—		3
121 days and greater past due	253		13		—		266
Total	$	351	$	200	$	—	$	551